By Stephen Nakrosis
Novan said Wednesday it will sharpen its focus and resources on the potential approval of berdazimer gel, 10.3% for molluscum contagiosum, and will reduce its workforce.
Molluscum contagiosum, an infection caused by a virus, results in small, round bumps on the skin.
The company's shares moved lower following the news after the bell Wednesday. At 5:04 p.m. ET, the stock was trading 15% lower, at $1.15 per share. The stock ended the day's regular session up 14%, closing at $1.36 per share.
"We continue to face serious challenges achieving profitability with our commercial assets in the current economic environment, while also endeavoring to extend our cash runway through the PDUFA goal date of January 5, 2024, for berdazimer gel, 10.3%," company President and Chief Executive Officer Paula Brown Stafford said.
The medical dermatology company initiated a process to explore a sale or out-license of its commercial assets, which include Rhofade, Minolira and Cloderm.
A restructuring of its commercial business will result in a reduction in force of about 50% of employees, mostly among field sales representatives. Novan estimates it will incur about $900,000 in charges related to the reduction in force over a period of 12 months.
The company said it expects existing cash and cash equivalents as of March 31, along with expected receipts associated with product sales from its commercial product portfolio, will provide it with liquidity to fund planned operating needs into late June.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
May 31, 2023 17:19 ET (21:19 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Comments